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this is one long question, not multiple :( Consider the following two mutually exclusive projects: Year O $48,000 Cash Flow Cash Flow (A) (B) $346,000
this is one long question, not multiple :(
Consider the following two mutually exclusive projects: Year O $48,000 Cash Flow Cash Flow (A) (B) $346,000 49,000 24,400 69,000 22,400 69,000 19,900 444,000 15,000 NM 1 2 3 4 Whichever project you choose, if any, you require a return of 16 percent on your investment a-1 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years a-2 If you apply the payback criterion, which investment will you choose? Project A Project B b-1 What is the discounted payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) years Project A Project B years b-2If you apply the discounted payback criterion, which investment will you choose? Project A Project B C-1 What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B c-2 If you apply the NPV criterion, which investment will you choose? c-2 If you apply the NPV criterion, which investment will you choose? Project A Project B d-1 What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % % Project A Project B d-2If you apply the IRR criterion, which investment will you choose? Project A Project B e-1 What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) e-1 What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B e-2If you apply the profitability index criterion, which investment will you choose? Project A Project B f. Based on your answers in (a) through (e), which project will you finally chooseStep by Step Solution
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